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TV ad limits lifted

Canada's big TV broadcasters will be able to show all the commercials they want within three years under relaxed rules unveiled by federal regulators.

Okay, so it wasn't exactly like working with Sarah and Grissom on CSI, but Katie Awad had a lot of fun learning forensics.

By Chris SorensenBusiness Reporter

Fri., May 18, 2007

Canada's big TV broadcasters will be able to show all the commercials they want within three years under relaxed rules unveiled by federal regulators.

The CRTC said yesterday it will permit conventional television networks, such as CTV, CBC and Global, to air 14 minutes of prime-time commercials per hour beginning Sept. 1 – up from the current cap of 12 minutes per hour.

Next year the limit will be raised again to 15 minutes per hour, regardless of the time of day.

By 2009, the Canadian Radio-television and Telecommunications Commission said there will be no restrictions on advertising for the country's conventional, over-the-air TV broadcasters, who have complained loudly about a shrinking advertising base as viewers migrate to cable, satellite and the Internet.

The move is meant to give the big networks, reliant on advertising for revenues since their programming is beamed free over the airways, an edge over a flood of specialty TV channels, generally limited to 12 minutes per hour of ads based on individual licence agreements.

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But while the change ostensibly opens the door to wall-to-wall commercials on the major networks, industry observers predicted that conventional broadcasters are unlikely to lob dozens of extra ads at their audiences.

"The whole reason the broadcasters are in trouble is because consumers now have a whole plethora of television choices available to them," said Jeff Leiper, an Ottawa-based communications analyst. "So if the broadcasters program more ads than the consumers are willing to watch, they're going to slit their own throats."

What the change will do is bring Canadian broadcasters more closely in line with U.S. counterparts, who are subject to minimal restrictions when it comes to the quantity of television advertising they are allowed to air.

Most U.S. programming is purchased in blocks that leave room for between 14 and 16 minutes of ads – extra time now filled with promotions, public service announcements or news briefs, but will likely consist of paid ads once the new rules are in place.

As well, the commission said by Aug. 31, 2011, television channels must be broadcast in high definition digital, with the possible exception of remote regions where there are no digital transmitters. And the CRTC said under a new policy, English and French-language broadcasters must caption all programs between 6 p.m. and midnight for the hearing impaired.

But the CRTC turned down a network request to have cable and satellite providers pay to air programming.

The networks had argued the so-called "carriage fee" was needed to level the playing field since cable and satellite competitors earn money not only from ads on their specialty channels, but also from monthly fees they charge subscribers.

The CRTC decisions were part of a sweeping television review conducted last fall, with the fee request being the most controversial, resulting in heated debate and angry words during public hearings. Cable operator Ted Rogers scoffed at broadcasters' cry of poverty, at one time calling them "greedy."

Not surprisingly, cable firms praised the decision after threatening to pass along any extra fees to their customers.

"It's a good decision for consumers because it means they don't have to pay for something they didn't want to pay for," said Phil Lind, vice-chairman of Rogers Communications Inc.

In contrast, CanWest Global Communications Corp., owner of Global television network, was "disappointed" in the decision. A spokesperson for rival CTV Inc. declined to comment, citing CTV's $1.4-billion takeover of CHUM Ltd. now being reviewed by the regulator.

The Canadian Broadcasting Corp. said the new rules created an incentive for private networks to fill up on more American programming.

"Over the longer term, the net result will be fewer opportunities for Canadian stories to be told," the CBC said in a statement.

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